During the first three months of the year joint-stock company Reverta continued performance of targets and tasks established in the Restructuring Plan and repaid EUR 5m of interest to the State Treasury. Thus, the total amount repaid to the Treasury since 1 August 2010 to 31 March 2015 is EUR 318.5m.
During the reporting period Reverta recovered EUR 9.6m from the restructuring of distressed loans and disposal of real estate properties, as compared to EUR 16.6m during the same period of the previous year.
Taking into account the fact that Reverta is recovering loans not only in the Baltic States but also in Russia and Ukraine, the Russian - Ukrainian crisis that started in 2014 and weakened the economy of both countries is still affecting Reverta’s performance results in a negative way. The devaluation of rouble encumbered loan repayment capacity of Russian and other CIS clients and therefore the amount of funds recovered in the CIS during Q1 2015 has significantly decreased. In some cases borrowers took advantage of the situation by ceasing repayments without any justified grounds and by trying to hide their assets.
During the reporting period Reverta continued the workout of the real estate portfolio through professional management and sales of the repossessed collaterals. During the first three months of 2015 Reverta’s Sales Team has sold 74 real estate properties for the total amount of EUR 3m. Although the achieved result is in line with the plan, it is by half less than the performance of the same period last year. This can be explained by the fact that currently prospective buyers are interested in properties of lower value, which leads to significantly smaller sales transaction amounts.
Overall, since 1 August 2010 to 31 March 2015 the State has received from Reverta a total of more than half a billion euros. This sum comprised payments to the State Treasury, repayments of the State guaranteed Syndicated Loan, and accrued interest in the amount of EUR 244.6m. Approximately EUR 15m has been paid in addition to the State in the form of various taxes and duties. Starting from 1 August 2010 Reverta has paid a total of EUR 17.2m under subordinated liabilities.
At the end of the reporting period the total asset portfolio of Reverta was EUR 214.1m. As a result of loan restructuring and debt recovery the net book value of Reverta’s loan portfolio has decreased to EUR 166m.
Additional information:
Reverta is the largest distressed assets manager in the Baltic countries. The main competencies of the Company are loan restructuring, debt recovery and real estate management. As of 1 August 2010 Reverta has recovered more than EUR 614.9m from development and sales of distressed assets.
To learn more about Reverta, please visit the Company’s web page: www.reverta.lv.
For additional information contact:
Marita Ozolina
Head of Communications and Marketing Department
Phone: 67779142 or 29287169
E-mail: marita.ozolina@reverta.lv
